State: Rebates require income-tax return
New program provides free help to file proper forms

Barry Massey | The Associated Press
Posted: Wednesday, September 17, 2008
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The state is trying to make certain that eligible New Mexicans receive their tax rebates.

New Mexicans earning up to $70,000 a year qualify for a rebate, which averages $87 but varies depending on a taxpayer's income, tax filing status and family size.

Residents must file a 2007 state income tax return to receive a rebate.

However, tens of thousands of New Mexicans may qualify for a rebate but typically aren't required to file a tax return because their income is tax-free or very low. Eligible New Mexicans with no state tax liability are entitled to a rebate.

Among those who may not have filed a tax return are active-duty military in combat zones, senior citizens living only on Social Security, retired veterans with small pensions and Native Americans who live and work on tribal lands.

Gov. Bill Richardson on Wednesday announced an outreach program that will provide free assistance to people in completing tax returns and submitting them to the state.

People also will be encouraged to apply for other government assistance programs or tax relief if they are qualified. For example, there are refundable tax credits offered by the state and federal governments for lower-income individuals and families. People can receive cash payments for the full amount of the credits even if they have no tax liability. There's also a property tax rebate for low-income residents who are 65 years or older.

"In some cases, filing a return can mean hundreds of extra dollars of government assistance to these families on top of the state rebate," Richardson said.

Richardson signed the $56 million one-time rebate into law last month to help lower- and middle-income New Mexicans with rising household expenses, including gasoline, food and utilities. The rebate was approved by lawmakers during a special session of the Legislature.

The largest rebates go to households earning up to $30,000: $50 for each taxpayer or dependent. That means a $200 rebate for a married couple in that income range if they have two children and file a joint tax return.

The smallest rebates — $25 for a taxpayer or dependent — are for New Mexicans making from $50,001 to $70,000. A family of four with that income would get a $100 rebate.

Richardson declared Oct. 8 as "New Mexico Tax Rebate Day." More than 100 tax preparers will be deployed around the state to help people fill out tax returns so they can get a rebate. Offices of the Taxation and Revenue Department will be open from 7 a.m. to 7 p.m. on that day and other Wednesdays in October. The agency has a toll-free telephone line to answer questions — 866-285-2996. Other state agencies will have tax forms and tax-filing information in their field offices across the state. Materials will be available in Spanish, Navajo and other Native American languages.

More than 600,000 New Mexicans are expected to receive rebates.

For residents who filed their tax returns by Monday, rebate checks should arrive by Thanksgiving. The first wave of rebates will be mailed by Oct. 21.

Eligible New Mexicans have three years to file a 2007 tax return and claim their rebates. Once a tax return is filed, a rebate check should be received within 75 days.

"Some people are suspicious that if they do file something, they'll owe something to the government," said Taxation and Revenue Secretary Rick Homans. "Part of our education campaign is to make people feel comfortable and assured that the only thing they are going to get if they file is a check from the state government and possibly one from the federal government."




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